I don't mind paying for .Mac services either - for the reasons that
'scates pretty much comprehensively outlined above.
However, Apple Australia screwed us BIG time on the currency conversion and that did piss me off.
The Au$ had climbed remarkably well late last year and we did not see a reduction in the price until January... after most of us would have renewed our subscriptions.
PS - Don't forget that if you introduce people to .Mac and they cite you as the member that referred them, then you can get 20% off for each person who signs up based on your recommendation!